The Key Crypto Metric Driving BTC and ETH Prices Higher Through 2026

In a recent breakdown shared by analyst Jamie Coutts, a single powerful crypto metric is spotlighted as the potential catalyst for sustained upward momentum in Bitcoin (BTC), Ethereum (ETH), and various altcoins well into 2026. This insight, highlighted in a tweet from Milk Road on October 4, 2025, underscores how global liquidity trends could fuel ongoing rallies across the cryptocurrency market. As traders, understanding this metric isn't just about spotting trends—it's about positioning for profitable entries and exits. With BTC hovering near all-time highs and ETH building steam post its latest upgrades, this analysis arrives at a pivotal moment for crypto investors seeking to capitalize on long-term growth opportunities.

The metric in question revolves around global liquidity measures, often tracked through indicators like the Global Liquidity Index (GLI), which Jamie Coutts has frequently referenced in his market breakdowns. According to Jamie Coutts, this index captures the expansion of money supply across major economies, including actions by central banks such as the Federal Reserve's quantitative easing policies. Historical data shows a strong correlation: when global liquidity surges, as it did during the 2020-2021 bull run, BTC prices skyrocketed from under $10,000 to over $60,000 by April 2021, with ETH following suit from $200 to $4,000 in the same period. Fast-forward to today, with liquidity injections resuming amid economic recovery efforts, traders are eyeing similar patterns. For instance, recent Federal Reserve balance sheet expansions, reported as of September 2024, have already coincided with BTC's 15% monthly gain, pushing it toward the $65,000 resistance level. This metric suggests that if liquidity continues to flood markets through 2025-2026, BTC could test $100,000, while ETH might aim for $5,000, based on on-chain volume spikes and historical precedents.

Trading Strategies Leveraging Liquidity-Driven Momentum

From a trading perspective, integrating this liquidity metric into your strategy means focusing on key support and resistance levels tied to real-time market flows. For BTC/USD pairs on major exchanges, current support sits at $58,000, a level defended multiple times in Q3 2024 with trading volumes exceeding 500,000 BTC daily, according to data from blockchain analytics. Breaking above $70,000 could signal the start of a parabolic move, especially if altcoins like SOL and AVAX follow with 20-30% weekly gains, as seen in liquidity-fueled rallies of 2021. Traders should monitor on-chain metrics such as transaction volumes, which hit 1.2 million daily for ETH in September 2024, indicating robust network activity. Pair this with sentiment indicators—crypto fear and greed index at 65 (greedy) as of October 2025—and you've got a recipe for swing trades: buy dips below $60,000 for BTC with stop-losses at $55,000, targeting $80,000 by mid-2026. Institutional flows add weight here; ETF inflows reached $2 billion weekly in Q4 2024, per reports from asset managers, directly correlating with liquidity expansions.

Beyond BTC and ETH, altcoins stand to benefit immensely from this metric's implications. Jamie Coutts' analysis points to broader market cap growth, potentially lifting the total crypto market from $2.5 trillion to $5 trillion by 2026 if liquidity trends persist. Trading pairs like ETH/BTC show ETH gaining ground, with a ratio climbing from 0.04 to 0.05 in recent months, suggesting outperformance. For diversified portfolios, consider altcoin baskets tracking DeFi tokens, where trading volumes surged 40% in liquidity peaks. Risk management is crucial—volatility spikes during liquidity announcements, like central bank meetings, can lead to 10% intraday swings. By aligning trades with this core metric, investors can navigate uncertainties, from geopolitical tensions to regulatory shifts, while eyeing cross-market correlations with stocks like tech giants influenced by similar liquidity dynamics.

Ultimately, this crypto metric isn't a crystal ball, but it's a data-driven tool for informed trading decisions. As global economies push for growth through 2026, keeping an eye on liquidity indicators could unlock substantial returns. Whether you're a day trader scalping BTC futures or a long-term holder accumulating ETH, incorporating these insights enhances your edge in the evolving crypto landscape. Stay updated with analyses like Jamie Coutts' for timely adjustments, and always back strategies with verified market data to mitigate risks.